Kimberly-Clark CEO To Step Down Next Year As Results Beat Estimates
Kimberly-Clark Corp reported better-than-expected quarterly results on Monday, and said long-time chief executive officer Thomas Falk would step down and be succeeded by chief operating officer Michael Hsu next year.
The Huggies diaper maker also said it would keep its organic sales growth and earnings forecast for the year intact, sending its shares up 3% in early trading.
Falk, 60, will step down as CEO on 1 January, 2019, and will become the executive chairman, the company said.
Falk, who has been CEO since 12 September, 2002, steered the spinoff of the company's U.S-based healthcare business in 2014, to focus on its core brands such as Huggies and Kleenex tissues.
During his tenure, the company's annual sales have risen 38%, while the stock has nearly doubled.
But like other U.S. packaged goods makers, Kimberly-Clark is also plagued by surging commodities and transportation costs in recent times.
The industry is also being rocked by changing consumer habits and pricing pressure due to the rise of online sales. Kimberly's stock is down about 9% this year.
Hsu, 54, who has been the chief operating officer since 2017, oversaw the company's $8 billion North America personal care and consumer tissue business, its biggest unit.
Before joining Kimberly-Clark, Hsu also worked at Kraft Foods and H.J. Heinz, the company said.
Excluding items, Kimberly-Clark earned $1.71 per share in the third quarter ended September, beating the average analyst estimate of $1.63, according to Refinitiv data.
Overall revenue slipped 1.7% to $4.58 billion (€3.9 billion), due to a strong dollar, but higher pricing pushed up organic revenue 1%.